Abstract

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Privacy Protection and Technology Diffusion: The Case of Electronic Medical Records


Amalia R. Miller


University of Virginia - Department of Economics

Catherine Tucker


Massachusetts Institute of Technology (MIT) - Management Science (MS)

February 2009

NET Institute Working Paper No. 07-16

Abstract:     
This paper quantifies the effect of state privacy regulation on the diffusion of Electronic Medical Records (EMR). EMR allow medical providers to store and exchange patient information using computers rather than paper records. Hospitals may be more likely to adopt EMR if they can reassure patients that their confidentiality is legally protected. Alternatively, privacy protection may inhibit adoption if hospitals cannot benefit from easily exchanging patient information. We find that state privacy regulation restricting hospital release of health information reduces aggregate EMR adoption by hospitals by more than 24%. We present evidence that suggests that this is due to the suppression of network externalities.

Number of Pages in PDF File: 34

Keywords: Technology Diffusion, Privacy Protection, Health-care IT, Network Externalities, Hospitals

JEL Classification: I1, K2, L5, O3

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Date posted: January 30, 2007 ; Last revised: July 22, 2012

Suggested Citation

Miller, Amalia R. and Tucker, Catherine, Privacy Protection and Technology Diffusion: The Case of Electronic Medical Records (February 2009). NET Institute Working Paper No. 07-16. Available at SSRN: http://ssrn.com/abstract=960233 or http://dx.doi.org/10.2139/ssrn.960233

Contact Information

Amalia R. Miller
University of Virginia (UVA) - Department of Economics ( email )
P.O. Box 400182
Charlottesville, VA 22904-4182
United States
HOME PAGE: http://people.virginia.edu/~am5by/
Catherine Tucker (Contact Author)
Massachusetts Institute of Technology (MIT) - Management Science (MS) ( email )
Cambridge, MA 02142
United States
HOME PAGE: http://cetucker.scripts.mit.edu
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